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Senate Bill S9134

2025-2026 Legislative Session

Relates to default insurance

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Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

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2025-S9134 (ACTIVE) - Details

Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §1113, Ins L

2025-S9134 (ACTIVE) - Summary

Defines "default insurance" means insurance providing first-party indemnity to a named insured for losses, costs, and expenses sustained by the named insured arising from a third party's material failure, as determined by the named insured, to perform a binding agreement executed by the named insured and such third party, where the third party is not an insured or beneficiary and has no rights under the policy.

2025-S9134 (ACTIVE) - Sponsor Memo

2025-S9134 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9134
 
                             I N  S E N A T E
 
                             February 5, 2026
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to default insurance
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subsection  (a)  of  section 1113 of the insurance law is
 amended by adding a new paragraph 36 to read as follows:
   (36) "DEFAULT INSURANCE" MEANS INSURANCE PROVIDING FIRST-PARTY  INDEM-
 NITY TO A NAMED INSURED FOR LOSSES, COSTS, AND EXPENSES SUSTAINED BY THE
 NAMED  INSURED  ARISING FROM A THIRD PARTY'S MATERIAL FAILURE, AS DETER-
 MINED BY THE NAMED INSURED, TO PERFORM A BINDING AGREEMENT  EXECUTED  BY
 THE  NAMED INSURED AND SUCH THIRD PARTY, WHERE THE THIRD PARTY IS NOT AN
 INSURED OR BENEFICIARY AND HAS NO RIGHTS UNDER THE POLICY.
   § 2. This act shall take effect on the first of January next  succeed-
 ing  the date on which it shall have become a law and shall apply to all
 policies and contracts issued, renewed, modified, altered, or amended on
 or after such  date.  Effective  immediately,  the  addition,  amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of  this  act  on  its  effective  date  are  authorized  to be made and
 completed on or before such date.
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14660-01-6

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